15-70-430. Estimate allowed for agricultural use — seller’s signed statement acceptable on keylock or cardtrol purchases. (1) (a) An applicant whose use qualifies as agricultural use may apply for a refund of the applicable tax on the gallons of gasoline or special fuel as indicated by bulk delivery invoices or by evidence of keylock, cardtrol, electronic transaction report, or retail purchases as an estimate of off-highway use.

Terms Used In Montana Code 15-70-430

  • Agricultural use: means use of gasoline or special fuel by a person who earns income while engaging in the business of farming or ranching and who files farm or income reports for tax purposes as required by the United States internal revenue service. See Montana Code 15-70-401
  • Bulk delivery: means placing gasoline or special fuel not intended for resale in storage or containers. See Montana Code 15-70-401
  • Department: means the department of transportation. See Montana Code 15-70-401
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Gasoline: includes :

    (i)all petroleum products commonly or commercially known or sold as gasolines, including casinghead gasoline, natural gasoline, aviation fuel, and all flammable liquids composed of a mixture of selected hydrocarbons expressly manufactured and blended for the purpose of effectively and efficiently operating internal combustion engines; and

    (ii)any other type of additive when the additive is mixed or blended into gasoline, regardless of the additive's classifications or uses. See Montana Code 15-70-401

  • keylock: means a unique device intended to allow access to a fuel dealer's unattended pump or dispensing unit for the purpose of delivery of gasoline or special fuel to an authorized user of the unique device. See Montana Code 15-70-401
  • special fuel: includes biodiesel and additives of all types when the additive is mixed or blended into special fuel, regardless of the additive's classifications or uses. See Montana Code 15-70-401
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
  • Use: means the operation of a motor vehicle on the public roads and highways of this state or of any political subdivision of this state. See Montana Code 15-70-401

(b)To ensure that the applicant’s use qualifies as agricultural use, the department of transportation may request state or federal income tax information from the applicant or the department of revenue to determine the ratio of the applicant’s gross earned farm income to total gross earned income, excluding unearned income, provided that the department of transportation gives notice to the applicant.

(2)(a) For purposes of application for a refund under subsection (1)(a), the department shall accept, as evidence of keylock or cardtrol purchases, a statement of the sale of gasoline or special fuel with applicable Montana tax that identifies the purchaser and specifically identifies the transaction as a keylock or cardtrol purchase.

(b)For purposes of application for a refund under subsection (1)(a), the department shall accept, as evidence of retail purchases, a receipt for the sale of gasoline or special fuel with applicable Montana tax that identifies the purchaser, the physical address of the dealer, the type of fuel purchased, and the number of gallons purchased. Only retail purchases within 50 miles of the agricultural operation of the applicant are eligible for a refund.

(3)An applicant may apply for a refund of the applicable tax on gallons of gasoline or special fuel according to the applicant’s ratio of gross earned farm income to total gross earned income, excluding unearned income, as follows:

(a)if the ratio is 50% or more, the applicant may apply for a refund of 60% of the gasoline or special fuel tax;

(b)if the ratio is between 40% and 49%, the applicant may apply for a refund of 50% of the gasoline or special fuel tax;

(c)if the ratio is between 30% and 39%, the applicant may apply for a refund of 40% of the gasoline or special fuel tax; and

(d)if the ratio is less than 30%, the applicant is not eligible for a refund of the gasoline or special fuel tax under this section.

(4)If the applicant’s ratio in any of the 3 previous years on record is higher than the present year, the highest ratio must be used to calculate the eligible refund.

(5)If any invoice or evidence is either lost or destroyed, the purchaser may support the purchaser’s claim for refund by submitting an affidavit relating the circumstances of the loss or destruction and by producing other evidence that may be required by the department of transportation.

(6)An applicant whose use does not qualify as agricultural use may not estimate and shall maintain records as required by 15-70-426.